Viterra financial results released. They are squeezing out more profit, check the fertilizer margin

[dak7]

Anyone else check out their financials?
Don

http://www.viterra.com/portal/wps/portal/canada/ca/news_ca/news_releases/!ut/p/c5/04_SB8K8xLLM9MSSzPy8xBz9CP0os3hLSw8LQycTA0v_ICMzA0 _PUA-_kKAApwADY_1wkA6zeAMcwNFA388jPzdVvyA7rxwA5Krefw!!/dl3/d3/L2dJQSEvUUt3QS9ZQnZ3LzZfOTlIODFCNDA5OFIxNjBJMk5NR1 BKTzFIMzM!/





Viterra Announces Record Annual Financial Performance, Fourth Quarter Results and a Dividend Increase


CALGARY, ALBERTA--(Marketwire - Jan. 18, 2012) - Viterra Inc. ("Viterra") (TSX:VT)(ASX:VTA) today announced record financial results for the year ended October 31, 2011 due to strong contributions from its agri-products operations, higher volumes for the Australian grain handling and marketing operations, and a solid performance from the processing operations. For the year ended October 31, 2011, Viterra generated EBITDA of $702 million, a 36% increase over the prior year, as all three business segments increased sales revenue and gross profit contributions relative to fiscal 2010. Agri-products' EBITDA increased 59% on strong fertilizer volumes and pricing. Fertilizer margins averaged $133.53 per tonne for fiscal 2011 compared to $97.36 per tonne in the prior year. Grain Handling and Marketing's EBITDA rose 28% due to record grain receipts and shipments in Australia and strong results from North American Grain. The consolidated global pipeline margin for fiscal 2011 increased to $37.11 per tonne compared to $32.83 per tonne in fiscal 2010. Processing's EBITDA increased 19%, reflecting the new pasta and oat businesses acquired in the latter half of fiscal 2010 and a combined food processing margin of $116.94 per tonne versus $101.85 per tonne last year.

[grrrr]

CIBC World Markets Inc. analyst Jacob Bout has downgraded Viterra Inc. (VT-T11.06-0.10-0.90%) to “sector performer” from “sector outperformer,” citing the stock’s strong price appreciation in 2011. But he still sees a robust sales future for Viterra, particularly as the Canadian Wheat Board loses its monopoly on wheat and barley. “With the dissolution of the CWB likely to happen by August 2012, Viterra has already begun offering contracts for wheat and barley and has secured service agreements with the railways,” he notes.
Upside: Mr. Bout maintained a $14 price target.

[Hopperbin]

VT shares have dropped 7 percent to 10.33 per share since those results come out as the 4th quarter was poorer than the previous 4th.
On the second post a 14 dollar price target would be a pretty good share price I wonder when he figures it will hit that price.
On the margins on fert. processing etc. Is that the real net profit in those sectors or is there some expenses yet. Is the margin gross or net big difference but I cannot find the term definition as it is used here, can someone help with that?

[wilagro]

The use of "gross profit margins" is used in the press release. This does not always indicate that "net profits" increased.

There is quite a bit of positive comparison to past performance numbers.

These "public" releases often have a PR spin involved which encourages investors and investment...there are always positives to stress rather than negatives.

I always got my bonus based on "net profit"...never "gross profit" so I do know a bit about this. Increased sales are always good but they have to reflect in more net profit or they don't mean much...spinning your wheels comes to mind.

[Burbert]

Wow, wow, wow. A tired old company,
reportin that theys squeezing framers
fer more and more. Really doin
business, what wit the annual yearly
price increases! This is the usual
phoney balonie crap that framers are
always bein fed. Viterra a progressive,
dynamic, angribusiness leader, yeah
right, ifn ya believe that, I'll tell ya
how much wes makin of the fram to, ya'll
be impressed fer sure........

[Choice2U]

Hey Burburt....Isn't it nice to have the choice to deal with another grain company if you have a problem with Viterra squeezing money out of you?